On Tuesday, this blog discussed preapproved/prescreened credit cards and whether or not they affect your credit (click here to be taken to this past Tuesday's blog). Today, we’ll touch on the benefits of these offers and, if desired, how to opt out of receiving them.
Can These Offers Benefit me?
Receiving multiple credit offers in the mail can be irritating. For many, these mailers often go straight to the trash with the junk mail. Nevertheless, financial institutions (FIs) continue extending these propositions. Why? Because many consumers see value in them. One benefit of these prescreened offers is that they provide a way for people to “comparison shop,” i.e., to compare the price and services of different FIs against each other. They can also make consumers aware of offers that aren’t available to the public at large. Finally, they can give you options to choose from if you’re considering a new line of credit.
The Fair Credit Reporting Act (FCRA) allows credit reporting companies to provide your name to creditors in order for them to send you credit offers.
Can I Opt Out of These Offers?
If there was a way for you to stop getting preapproval mailers, would you take it? If you answered “yes,” you’ll be happy to hear you’ve got a couple of options. Under the FCRA, consumers have the right to opt out of these offers. You may request to opt out of prescreened offers for five years or permanently. Visit optoutprescreen.com for more information or to opt out. If you have previously opted out of prescreened offers and would like to opt back in, you may also do so through the same website.
